A couple of recent studies by Allianz point to the difficulty of retirement in today's poor economy. Most of those nearing retirement are not only unprepared, but often they have no practical idea of how much money they need to put away to retire. Consequently, their children will likely not see an inheritance from their parents.
Not as many mothers and fathers leaving cash
Only 14 percent of boomers' mothers and fathers think that they will leave any sort of inheritance for their children, which means most baby boomers should not hope for any sort of inheritance, according to Allianz. Baby boomers include those born between 1946 and 1964.
According to "Someday All This Will Be Yours" author Hendrik Hartog:
"Culturally, the idea of a legacy has disappeared for all but the very wealthy."
Support for parents
Instead, many elderly parents are using every cent they accumulate to live the remainder of their own lives. Often, it even becomes up to their children to give them help.
KLB Financials Kay Kramer said:
"There's no question that 10 years ago people were expecting greater inheritances than they are now. With very few exceptions, people don't want to count on anything. And we've got some people who are actively helping parents out because they don't have enough."
Paying for medical
Right now, the average American's net worth is about $77,000, which was the same as it was 20 years ago. The value of homes and other assets are dropping too with the economic downturn, according to the Star Tribune. Retirement is becoming much more expensive with increasing costs of medical care.
Retirees not sure what to save
A second study from Allianz recently concluded that about a third of transition baby boomers -- those between the ages of 55 and 65 -- were not even sure of how much they will need to accrue for retirement.
Walter White is the President and CEO of Allianz Life. He said:
"It's alarming that so many boomers on the cusp of retirement are still unclear about the basic factors which determine their ability to fund their lifestyle once they stop working."
With regards to retirement, the biggest issue is that people do not factor in taxes or inflation. About 16 percent considered taxes in their estimate while only 10 percent imagined of inflation.
Begin as early as possible
There were lots of people who did not prepare early. In fact, 16 percent said they would wait until they were a year from leaving the job to begin saving. Another 43 percent said that they did not consider retirement until they were five years from leaving their job. Allianz suggests everyone get a head start.
Not as many mothers and fathers leaving cash
Only 14 percent of boomers' mothers and fathers think that they will leave any sort of inheritance for their children, which means most baby boomers should not hope for any sort of inheritance, according to Allianz. Baby boomers include those born between 1946 and 1964.
According to "Someday All This Will Be Yours" author Hendrik Hartog:
"Culturally, the idea of a legacy has disappeared for all but the very wealthy."
Support for parents
Instead, many elderly parents are using every cent they accumulate to live the remainder of their own lives. Often, it even becomes up to their children to give them help.
KLB Financials Kay Kramer said:
"There's no question that 10 years ago people were expecting greater inheritances than they are now. With very few exceptions, people don't want to count on anything. And we've got some people who are actively helping parents out because they don't have enough."
Paying for medical
Right now, the average American's net worth is about $77,000, which was the same as it was 20 years ago. The value of homes and other assets are dropping too with the economic downturn, according to the Star Tribune. Retirement is becoming much more expensive with increasing costs of medical care.
Retirees not sure what to save
A second study from Allianz recently concluded that about a third of transition baby boomers -- those between the ages of 55 and 65 -- were not even sure of how much they will need to accrue for retirement.
Walter White is the President and CEO of Allianz Life. He said:
"It's alarming that so many boomers on the cusp of retirement are still unclear about the basic factors which determine their ability to fund their lifestyle once they stop working."
With regards to retirement, the biggest issue is that people do not factor in taxes or inflation. About 16 percent considered taxes in their estimate while only 10 percent imagined of inflation.
Begin as early as possible
There were lots of people who did not prepare early. In fact, 16 percent said they would wait until they were a year from leaving the job to begin saving. Another 43 percent said that they did not consider retirement until they were five years from leaving their job. Allianz suggests everyone get a head start.
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